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BPS LOSSES & COUNTRYSIDE STEWARDSHIP – have you done the Maths?
Progressive reductions will be made to the Basic Payment Scheme from the 2021 scheme year. The Rural Payments Agency have created an online calculator to aid you in calculating how these progressive reductions could affect your Direct Payment in England, for the scheme years 2021 to 2024.
BPS REDUCTION EXAMPLE:
Green Farm is an arable farm earning £30,000 per annum from direct payments. Green Farm will experience the following reductions in years 2021 to 2024:
2021 – £1,500
2022 – £6,000
2023 – £10,500
2024 – £15,000
With BPS greening rules abolished, there is an opportunity to introduce a Countryside Stewardship (CS) option as a third crop and on less productive areas of land. The inclusion of CS options on the farm allows an area to be taken out of production whilst providing a guaranteed income, irrespective of variable weather conditions, variable yields and market conditions.
Green Farm has allocated 8 ha into the option AB15 two – year sown legume fallow, in replacement of a break crop. This option aids in controlling blackgrass and is beneficial for soil structure.
AB15 – 8ha – £522 / ha – £4176 per annum
Green Farm has also allocated 4ha into the option AB9 winter bird food, in awkward and less productive field corners.
AB9 – 4ha – £640 / ha – £2560 per annum
TOTAL CS INCOME £6736 (per annum)
The above examples demonstrate the income which can be provided from CS from two options alone. There are a collection of CS options available for arable, mixed and pasture farms.
For any farmers currently in CS with an agreement due to expire in December 2021, please note you are eligible to reapply in 2021 for a new agreement. Alternatively the RPA have confirmed you may be offered an opportunity to apply for a CS mirror agreement based on your options in your expiring agreements.
If you would like advice drawing up a Countryside Stewardship scheme designed for your farm or you require advice on your farm businesses approach to the BPS reductions, please do not hesitate to contact our team of qualified and experienced professionals at either Stephensons Rural or Boulton Cooper.